SYNNEX Corporation (NYSE:SNX) shareholders have witnessed a decrease in enthusiasm from smart money of late.
In the eyes of most stock holders, hedge funds are assumed to be slow, old financial vehicles of the past. While there are over 8000 funds in operation at present, we choose to focus on the upper echelon of this club, around 450 funds. It is estimated that this group controls most of all hedge funds' total capital, and by paying attention to their best picks, we have brought to light a few investment strategies that have historically outperformed the market. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points per year for a decade in our back tests, and since we've began to sharing our picks with our subscribers at the end of August 2012, we have outclassed the S&P 500 index by 24 percentage points in 7 months (see the details here).
Just as important, optimistic insider trading activity is another way to parse down the financial markets. Obviously, there are a number of incentives for a corporate insider to downsize shares of his or her company, but only one, very obvious reason why they would buy. Many empirical studies have demonstrated the useful potential of this strategy if you know where to look (learn more here).
Keeping this in mind, it's important to take a peek at the recent action encompassing SYNNEX Corporation (NYSE:SNX).
At the end of the fourth quarter, a total of 7 of the hedge funds we track held long positions in this stock, a change of -22% from the previous quarter. With hedgies' sentiment swirling, there exists a few noteworthy hedge fund managers who were upping their holdings significantly.
According to our comprehensive database, Joel Greenblatt's Gotham Asset Management had the most valuable position in SYNNEX Corporation (NYSE:SNX), worth close to $5.7 million, accounting for 0.3% of its total 13F portfolio. Coming in second is Jim Simons of Renaissance Technologies, with a $3.9 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Remaining hedge funds with similar optimism include Ken Griffin's Citadel Investment Group, Cliff Asness's AQR Capital Management and John Overdeck and David Siegel's Two Sigma Advisors.
Judging by the fact that SYNNEX Corporation (NYSE:SNX) has faced declining sentiment from the aggregate hedge fund industry, logic holds that there exists a select few funds who sold off their full holdings in Q4. It's worth mentioning that Geoffrey S. McCuskey's Riverside Advisors said goodbye to the largest investment of the 450+ funds we key on, valued at an estimated $3 million in stock.. Peter Rathjens, Bruce Clarke and John Campbell's fund, Arrowstreet Capital, also sold off its stock, about $0.9 million worth. These moves are intriguing to say the least, as total hedge fund interest fell by 2 funds in Q4.
Bullish insider trading is most useful when the primary stock in question has seen transactions within the past 180 days. Over the latest half-year time period, SYNNEX Corporation (NYSE:SNX) has experienced zero unique insiders purchasing, and 4 insider sales (see the details of insider trades here).
Let's also take a look at hedge fund and insider activity in other stocks similar to SYNNEX Corporation (NYSE:SNX). These stocks are Cardtronics, Inc. (NASDAQ:CATM), Interval Leisure Group, Inc. (NASDAQ:IILG), Shutterstock Inc (NYSE:SSTK), VistaPrint Limited (NASDAQ:VPRT), and Euronet Worldwide, Inc. (NASDAQ:EEFT). This group of stocks belong to the business services industry and their market caps are similar to SNX's market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Cardtronics, Inc. (NASDAQ:CATM)||9||1||5|
|Interval Leisure Group, Inc. (NASDAQ:IILG)||9||0||0|
|Shutterstock Inc (NYSE:SSTK)||2||1||0|
|VistaPrint Limited (NASDAQ:VPRT)||9||3||3|
|Euronet Worldwide, Inc. (NASDAQ:EEFT)||10||0||4|
With the returns exhibited by Insider Monkey's time-tested strategies, everyday investors must always monitor hedge fund and insider trading sentiment, and SYNNEX Corporation (NYSE:SNX) is no exception.